Wages Fall, Rigs Increase in Permian Basin

Wages in the Permian Basin fell in Q3 2017, according to the latest metrics from the Federal Reserve Bank of Dallas. Average weekly wages dropped 0.3% between Q2 2017-Q3 2017, with the average weekly wage more than $1,200. Meanwhile, wages in Texas fell by almost 1% during the same period.

Meanwhile, the oil rig count increased to 410 rigs in January 2018, an increase of 12 rigs from the prior month, and the highest increase since January 2015. Permian Basin production stood at 2.85 million barrels per day, representing a 69,000 b/d increase from December. The Energy Information Administration (EIA) is forecasting U.S. crude oil production in 2018 to average a record-breaking 10.6 million b/d.

Average West Texas Intermediate crude spot price was $63.70 per barrel in January 2018, an increase from the $57.88 per barrel in December 2017.

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